Mine Project Economics

Provisional Schedule

This webcast is divided into three sessions from 8.00am to 10.30am Pacific Daylight Time each day and will cover the following topics:

Introduction

Basic concepts of discounted cash flow, continuous cash flow models, basic project cash flow model, examples of valuations

Discount Rates

Systematic and unsystematic risks, the capital asset pricing model

Valuation of Project Finance

Capital structure, equity and debt financing, weighted average cost of capital, flow to equity, adjusted present value

Valuation of Tax Shields

Depreciation and interest tax shields , present value of tax shields

Mining Costs

Capacity factoring, cost models, contingency, activity-based costing, strategic and tactical decision making using costs

Uncertain Input Parameters

Models of uncertainty, analytical and simulation techniques, effects of risk perception, examples

Real Options

Types of real options, mine valuation by real options, examples, real options as a design paradigm (real options in real mines).
Spreadsheet models showing the methodologies employed and examples will be provided.